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Telecoms

Snap posts 3Q expectations beat even as Israel-Hamas conflict reduces ad campaigns

Snap Inc (NYSE:SNAP) shares shed 0.1% in extended trading Tuesday after initially popping close to 20% following the company’s quarterly results.

The social media company posted adjusted earnings of $0.02 per share, on revenue of $1.19 billion, compared to Street expectations of a $0.04 per share loss on revenue of $1.11 billion.

Snap’s global daily active users came in at 406 million, just above the 405.7 million expected.

Snapchat+, the company’s $3.99 per month subscription service, saw more than 5 million subscribers in the period, up from 4 million a quarter ago.

In its current quarter, Snap noted that it has seen a decline in advertising campaigns due to the Israel-Hamas war. Specifically, the company has “observed pauses in spending from a large number of primarily brand-oriented advertising campaigns immediately following the onset of the war in the Middle East,” according to a statement.

As a result, the company did not offer official fourth-quarter results, citing “the unpredictable nature of war.”

Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com

Follow him on Twitter @andrew_kessel

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